Resolution No. 13/2023 of 16 January 2023 of the Energy Secretariat (SE) establishes the General Conditions that hydrocarbon exploration and production companies must comply with to access Argentina’s foreign exchange market to obtain foreign currency related to their Incremental Oil and Natural Gas Production.
By Decree No. 57/2023 issued on 3 February 2023, the National Executive Power cancelled the 5% export refund on exports of lithium, lithium oxide and hydroxide, lithium chloride and lithium carbonate produced in the provinces of Catamarca, Jujuy and Salta.
On 17 January 2023, the governor of the Province of La Rioja enacted Law No. 10,608, declaring the study, research, prospecting, exploration, exploitation and industrialization of lithium and its derivatives to be of public interest. The Law undertook the following measures: (i) suspended existing mining permits and concessions related to this resource for 120 days with a possible extension for the same period, with the plan to determine areas of interest; (ii) established the participation of the provincial company in all lithium-related projects; and (iii) established a preference right for provincial state-owned companies in the application for mining rights.
On 1 December 2022, mining canons were increased through the enactment of the General Budget Law of the National Administration for 2023, specifically by the amendment of articles 31, 213, 215, 219 and 221 of the Mining Code. These canons had not been modified since 2014.
It is also established that the canons will no longer be adjusted by law but by resolution of the Secretary of Energy based on the inter-annual variation of the Consumer Price Index.
Resolution No. 84/2022 of the Secretariat of Mining, published in the Official Gazette on 29 November 2022, created the Federal Registry of Mining Suppliers where individuals and legal entities that, due to their activity or corporate purpose, offer goods, inputs or services, including those of technological innovation and knowledge economy, to companies in the mining sector, may register.
National and international public tenders for the geological and feasibility exploration of 11,000 hectares in the Salinas Grandes and Laguna de Guayatayoc basins consisting of seven mining properties, in the province of Jujuy, Argentina, will soon be launched for the eventual development and production of lithium carbonate. The bidding documents are for sale until 28 November 2022 and offers will be opened on 12 December 2022. The Tender is based on a private initiative proceeding initiated by Lithos Desarrollos Energéticos SA, which grants the company preference in consideration of bids.
Argentina has passed Resolutions AFIP 16/2022 and 19/2022 to create a “Vaca Muerta” customs corridor. The purpose of these resolutions is to accelerate the customs clearance process for imports of goods to be used in the construction of the “Gasoducto Presidente Néstor Kirchner” gas pipeline as well as in the development and exploitation of the Vaca Muerta oilfield. Once the resolutions are implemented, they will substantially reduce the amount of time it takes to import covered goods.
The legislatures of Salta, Catamarca and Jujuy, by Law Nº 8.289, Law Nº 5.756 and Law Nº 6.278, respectively, ratified the Interprovincial Treaty for the Creation of the Lithium Mining Region, which had been signed in October 2021.
On 3 August 2021, Resolution No. 742/2021 (“Resolution”) was published, whereby the Secretary of Energy (“Secretary”) issued new measures to be applied in favor of the successful bidders of the “RenovAr Program” (“Program”) projects delayed in obtaining commercial authorization or failing to provide the committed energy supply.
These measures, subject to certain requirements, involve the following incentives: (i) reduction of penalties; and (ii) extension of deadline to achieve commercial authorization.
By National Law No. 27,640, published on 4 August 2021, the National Congress approved the new regulatory framework for biofuels that will be valid in Argentina from 5 August 2021 until at least 31 December 2030 (“Law”). The Law establishes, among others, new mandatory percentages of biofuels to be included in blends with fossil fuels reducing from 10% to 5% the prior percentage for biodiesel, granting more discretion to the enforcement authority, and establishing tax exemptions while repealing previous tax benefits.